Dollar-yen has traded in a ¥156-159 range since 24 September, making a break out of this range the focus going forward. A break above the 200-day moving average is cited as the first hurdle.
Since 24 September, dollar-yen has remained range-bound between the ¥156 and ¥159 levels. A break out of the range is seen as the key point, and if the market moves higher, resistance around ¥158.53 may come into focus.
Under the main scenario, a break above the range would lead to a test of ¥159.00 and the 24 September high of ¥159.04, with the upper cloud boundary of the Ichimoku chart at ¥159.61 and the ¥160.00 psychological level potentially coming into view.
Under the alternative scenario, if the market weakens, the Ichimoku conversion line around ¥157.45 would provide support, and a break below it would bring ¥157.12 and ¥157.00 into view. If dollar-yen falls into the ¥156 range, the 30 September low of ¥156.38 and the Ichimoku base line at ¥155.97 would come into focus, while a break below the base line would point to a move toward ¥155.00.